start your own business2

8/6/2019 Start Your Own Business2

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Small and MediumEnterprisesDevelopment

Agency ofNigeria


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OUTLINE OF PRESENTATIONIntroduction

Look for a Job or Create a Job: Why You MustWork For Yourself?Who is an Entrepreneur?Qualities of a Successful EntrepreneurBusiness Start Up RulesStarting Your Own BusinessTypes & Sources of Capital for your BusinessThe Role of SMEDANEnterprise Definitions in NigeriaPriority Enterprises Supported by SMEDANTypical Micro and Small EnterprisesConcluding Remarks

Prepared By SMEDAN 2


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INTRODUCTIONA man makes several decisions in life;Your presence here is a result of decision;The quality of your decision is a factor of thequality of information;We are limited by the volume of informationat our disposal;Our gathering today is to bridge the verylarge information gap;Few entrepreneurs are born, most are made;Todays programme is to awaken the giant in

you i.e. becoming an entrepreneur;SMEDAN is delighted to be part and parcel ofthis programme. It is indeed a privilege for usto be associated with the unemployed citizensof our country Nigeria where businessopportunities abound.



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LOOK FOR A JOB OR CREATE AJOB: WHY YOU MUST WORK FOR YOURSELF?

No employer will pay you your minimum worth; Your employer will never make you rich;

Your employer uses you as leverage for his wealth; Your employer takes away the most profitable and

prime time in life;

He determines how you live your life;

He perpetually buries your vision/dream inside thecorporate vision and mission;



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LOOK FOR A JOB OR CREATE AJOB: WHY YOU MUST WORK FOR YOURSELF CONTD?

He is able to peg your progress; He gives you job all your life;

Makes you believe you cannot live without salary; He pays you enough not to allow you quit;

He gives the illusion of job security;

You are obligated so as not to lose your job; Gets selfishly worried when you grow old; He sees you as an overhead, sometimes a burden.



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WHO IS AN ENTREPRENEUR? An entrepreneur is person who makes money bystarting or running a business enterprise

successfully Entrepreneurship could mean :

- Introduction of new product;- Introduction of a new method of production;- Discovery of a new market;- Combining existing resources in a new & more

productive ways;

- Delivering values to a community or a group ofcommunities. There could however be social as well as economic

entrepreneurs



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QUALITIES OF A SUCCESSFULENTREPRENEUR

FICTION: To be an entrepreneur, you must be bornthat way! FACT: Anyone can learn to operate like an

entrepreneur!!!

What Qualities/Characters must he possess? - Persistence - Calculated risk-taker- Visionary - Problem solving skills- innovative - Ability to consolidate resources- Independence - Strong desire to achieve- Competitive - Desire to work hard

- Strong integrity High energy level- Self-confidence Goal-oriented behaviour- Strong management & organizational skills



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QUALITIES OF A SUCCESSFULENTREPRENEUR CONTD

Being an entrepreneur is a visionary escape frompoverty and poor working conditions. The entrepreneur is a creator of wealth, a man of

vision and pioneer. An entrepreneur must be someone who has the

ability to explore the environment, identifyopportunities for improvement, mobilize men,money, materials and implement actions tomaximize such opportunities.

Entrepreneur are people who refuse to surrendertheir lives to external forces.

Entrepreneurs are people who take the initiativeand are not afraid of challenges. Entrepreneur have a very strong faith and positive

thinking in their pursuit of excellence and success.



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BUSINESS START UP RULES

These rules will help you towards being a successfulentrepreneur.These rules are as follows: Set realistic goals write your business plan Condition your mind no going back Find a mentor Maintain the momentum of enthusiasm Never be afraid of venturing conquer fear Put a successful front Avoid procrastination Be innovative and competitive See yourself as a winner Get started no matter the size



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STARTING YOUR OWN BUSINESS Every business enterprise starts as an idea, which isthen translated into a product or service that a

customer needs and is prepared to pay for. Sources of Business/Enterprise ideas

- Acquired skills, Hobbies, Desire, Vision, Passion- Literatures: Books, Journals, Newspapers;- Radio, Television, Internet;- Government Agencies like SMEDAN, RMRDC, NAPEP;- Seminars, Workshops, Conferences;- Poor delivery of a service or product;- Overpriced product or services;

- Failure of a product/service or company to satisfy customers- Advances in technology;- Existence of monopoly (if not protected by law);- Adaptation;- Rapidly expanding market;- Environmental changes, etc



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STARTING YOUR OWN BUSINESS

Avoidable Pitfalls about your Business ideas Do not reject an idea because of unfavourable

situation. Do not reject an idea because of facts Do not allow friends to make you reject ideas;

Do not reject ideas because of finance Chances of success is higher when you plan Businesses fail because of:

- Lack of experience;- Insufficient capital

- Poor location- Poor inventory management- Over-investment in fixed assets- Personal use of business funds- Unexpected growth- Competition- Low sales



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STARTING YOUR OWN BUSINESS

Translating Your Business ideas into Business Ventures Do a SWOT Analysis Know your Strength & Weaknesses;

Identify the Opportunities & the T hreats that surrounds the business. You need Information

- Feasibility Study Report & Business Plan

- Factors of Production1. Entrepreneur (You)2. Land (Workspace) Lease/Rent/Buy/Build

To start with, use your flat, room, sitting room, backyard, frontage,boys quarter or use a canopy, metal/wood container as shop or factory

3. Labour You can do it all yourself if skilledYou might require the services of other technical/skilled or unskilled(labourer) staff: sales persons/marketers; cashiers; accountants, etc

4. Capital Types & Sources of Capital- Business /Technical Information: raw materials; market

(local/Intl); machinery/equipment; govt. policies & regulations;registrations & permit; utilities (water supply, electricity), etc



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TYPES AND SOURCES OF CAPITALFOR YOUR BUSINESS

Your business destiny is not determined by the size ofcapital you start with.

In fact, TECHNICAL KNOWHOW, EXPERIENCE,RELATIONSHIPS, HUMAN RESOURCE, and IDEA

are also considered as capital every businessCANNOT do without apart from MONEY.Capital for your business may be for Start up,

Expansion, Consolidation or Diversification.TYPES OF CAPITAL FOR YOUR BUSINESS1. Owners Equity2. Loans3. Grants4. Venture Capitalist5. Business Angels



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TYPES AND SOURCES OF CAPITALFOR YOUR BUSINESS CONTD

1. Owners EquityMeans the private money you put into your businessYou get this from personal savings, friends support,family support, doing odd jobs, selling some of your liabilities or assets, trade by barter, Esusu or

Ajo gifts received from people, selling shares to friends (OPM), going into partnership, or you may just decide to sell the idea.2. Loans

Means that someone lends you money. You have to payinterest on a loan and you have to pay the loan. You canpay the loan back either in installments or at once,depending on what agreement you make with thelending institution. You may be able to borrow moneyfor: Land & Building; Equipment; Working Capital.It could be from suppliers credit, equipment leasing,Govt. Credit Schemes , etc.



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TYPES AND SOURCES OF CAPITALFOR YOUR BUSINESS CONTD

You can secure loan from Commercial banks, MicroFinance banks MFBs), Co-operative societies,Government Institutions: Bank of Industry (BOI);Nigeria Agricultural Credit and Rural DevelopmentBank (NACRDB); National Economic ReconstructionFund (NERFUND).

3. GrantsGovernments and Non-Government OrganizationsNGOs) sometimes give grants for potentialentrepreneurs to start small businesses. A grant is anallowance that a government or an organization gives tosupport small business creation.

4. Venture CapitalistThere are capitalist in Nigeria which consider newbusinesses with high potentials for financing. Theminimum amount they set for participation is usuallyhigh and beyond micro and small enterprises.



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THE ROLE OF SMEDAN Established in 2003 to facilitate the access ofMSMEs to finance and other resources that will

ensure that they contribute significantly to theeconomic development of Nigeria

Vision: To establish a structured and efficientMicro, Small and Medium Enterprises (MSMEs)sector that will enhance sustainable economicdevelopment of Nigeria.

Mission: To facilitate the access of Micro, Smalland Medium entrepreneurs/investors to allresources required for their development.



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THE ROLE OF SMEDAN CONTD

5 of the Agencys major activity areas are:1. Information provision and awareness

creation/business sensitization

2. Deployment of Business DevelopmentService (BDS), and Establishment of:- Business Support Centres (BSCs) &- Business Information Centres (BICs)in collaboration with State and local Government

The Business Clinics at the centres assistentrepreneurs with problem diagnosis and prescriptionof appropriate solutions.



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Training & Follow-ups - Priority training areasinclude business plan preparation, book-keeping,management, marketing/international trade, legaland regulatory environment, basic corporategovernance and computer/IT appreciation

Counselling- To enhance the MSMEs development,counselling sessions are offered in order to identifyand respond to operational challenges facingprospective and existing entrepreneurs

Mentoring Opportunities are afforded both start-ups and existing entrepreneurs to interface withand/or learn from the experience of successfulentrepreneurs.



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3. Promotion of enterprisenetworking/cluster formation tostimulate international competitiveness(working with existing and prospective)

4. Advocacy and improvement in operatingenvironment, usually in partnership withothers (private-public, public-public).

5. Promotion of linkages and access ofMSMEs to vital resources, especiallyfinance and workspace.



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ENTERPRISE DEFINITIONS IN NIGERIA

S/No Enterprise Employment Asset Base (ExcludingLand and Building)

1 MicroEnterprises

Less than 10 Less than N5million

2 SmallEnterprises 10 -49 N5m Less thanN50 million

3 Medium

Enterprises

50 -199 N50m Less than

N500m4 LargeEnterprises

200 andabove

N500 million andabove



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PRIORITY ENTERPRISES SUPPORTEDThese are: Micro Cottage Food Processing Enterprises Cottage Arts And Crafts Textiles And Clothing Leather And Leather Products

Basic Metal, Metal Fabrication And EngineeringEnterprises Electronic And Information Technology Enterprises Building And Construction Enterprises Oil And Gas Related Good And Services.

Women-Owned Enterprises Youth-Owned Enterprises Entertainment Enterprises Special Enterprises for Physically Challenged People,

including People Living with HIV/AIDSPrepared By SMEDAN 21


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TYPICAL MICRO AND SMALLENTERPRISES

A list of 500 low cost business ideas you couldstart as business are presented here for yourconsideration.

Remember you DERIVE more result from abusiness venture that aligns with your A cquiredSkills, Hobbies, Desire, Vision, Passion.

At SMEDAN, we strive to assist you in theevaluation and screening of your business idea asto its viability and feasibility beforeimplementation-Business Plan.



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CONCLUDING REMARKSWorking for yourself suffering andeventually eliminates your poverty.Everyone needs the necessities or comfortof life such as good cars, goodaccommodation, good food, and healthy

living. Nobody can do all these for you but yourself.Having a business of your own will provideopportunity for profit, which can be usedto meet these needs.The key to entrepreneurship is the abilityto generate, pursue, and capture the valuefrom venture ideas.



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CONCLUDING REMARKSBusiness opportunities are abundant inNigeria; all you need is to shine your eyesvery well. No one can call himself anentrepreneur until he/she has generated aventure idea and the idea converted to a

business venture.Idea may be defined as a business conceptthat is turned into a tangible product orservice offered by a business enterprisethat will result into financial profit.Idea, therefore is creating value anddeveloping new market, hence creating newcustomers.



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THANK YOU FORLISTENING


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